Nigeria among top 10 countries for crypto as Africa gets 0.5% global blockchain funding

Blockchain can be applied in SME financing, supply chain, mobility

Nigeria has ranked among the top 10 countries for adoption of crypto across the globe. This was according to a report, titled ‘State of Web3.0 in Africa’, unveiled at the weekend and prepared by Emurgo Africa, in strategic partnership with PwC.

The report provided an expansive and insightful analysis of the emergent influence of blockchain and Web3.0 technologies within Africa, the Middle East and North Africa (MENA) region.

It cast a spotlight on pivotal rise of blockchain investment within Africa. It noted that blockchain funding soared by a stunning 1,668 per cent in 2022, compared to the preceding year, accumulating a total of $91 million in countries like Kenya, South Africa and Nigeria, heralding Africa’s burgeoning presence within the global blockchain arena.

It noted further that blockchain funding raised in Africa grew from $5.165 million in 2021, compared to $91 million in 2022. The report noted that blockchain technology could be applied in areas including SME financing; supply chain; governance; digitising trade infrastructure and title deed registration.

Other areas are verification of education credentials and mobility smart contracts for informal markets, among others. Illustrating the progress and latent potential of blockchain and Web3.0 technologies across Africa, the report painted a picture of Kenya’s forefront role in blockchain adoption and digital innovation. It showcased Kenya’s speedy growth in implementing blockchain solutions that stimulate economic development in East Africa. In South Africa, the report indicated the escalating adoption of Web3.0 and blockchain technologies that are revolutionising industries via secure and transparent data management in Southern Africa.

The report also highlighted Nigeria’s high-ranking position in the top 10 worldwide for crypto adoption, emphasising the country’s role in propelling financial inclusion and nurturing innovation in the digital currency sector in West Africa.

These findings underline the transformative effect of blockchain and Web3.0 technologies in Kenya, South Africa and Nigeria, establishing them as major contributors to the digital revolution unfolding across Africa.

The MENA region, concurrently, has been identified as the fastest-growing crypto market from 2021 to 2022, leading the digital revolution among users, regulators and crypto investors alike.

On the global stage, crypto regulation is evolving, with 40 per cent of the 35 nations surveyed having instituted regulatory frameworks, 34 per cent actively developing them, and a scant nine per cent enforcing outright prohibitions on cryptocurrencies.

Despite the fact that Africa has, thus far, received a mere 0.5 per cent of global blockchain funding, the continent’s commitment to Web3.0 technologies and digital currencies is poised to recalibrate its technological and financial landscape, paving the way for unprecedented financial inclusion and innovation.

Weakening local currencies, coupled with fragile economic backdrops have created rapidly growing demand for USD-pegged stable coins on the continent, as consumers protect their asset values from free falling, and owners of SMEs seek cheaper and efficient ways of payment.

This development is a testament to the burgeoning adoption of digital currencies and blockchain technology as practical solutions in economically volatile environments.
Chief Executive Officer of EMURGO Africa, Ahmed M. Amer, emphasised: “Web3.0 technologies are already redefining the African digital landscape, offering innovative solutions to long-standing challenges and empowering individuals and communities across the continent. This report presents an in-depth exploration of the potential of these technologies to drive positive change, while highlighting the importance of fostering a collaborative environment between stakeholders, policymakers, and regulators to unlock the full potential of Web3.0.”

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